OK Company showed the following balances in connection with its noncurrent liabilities on December 31, 2019. Bonds Payable-10%, maturing Dec. 31, 2024 P 10,000,000 Bonds Payable-12%, maturing Dec. 31, 2029 8,000,000 Discount on BP-10% 800,000 Premium on BP-12% 500,000 Bond issue cost on BP-12% 200,000 1. No Bonds were retired during 2019. How much interest expense on the bonds payable should OK report in its 2019 income statement? (Use straight-line amortization)
OK Company showed the following balances in connection with its noncurrent liabilities on December 31, 2019. Bonds Payable-10%, maturing Dec. 31, 2024 P 10,000,000 Bonds Payable-12%, maturing Dec. 31, 2029 8,000,000 Discount on BP-10% 800,000 Premium on BP-12% 500,000 Bond issue cost on BP-12% 200,000 1. No Bonds were retired during 2019. How much interest expense on the bonds payable should OK report in its 2019 income statement? (Use straight-line amortization)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1MC
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OK Company showed the following balances in connection with its noncurrent liabilities on December 31, 2019.
Bonds Payable-10%, maturing Dec. 31, 2024 P 10,000,000
Bonds Payable-12%, maturing Dec. 31, 2029 8,000,000
Discount on BP-10% 800,000
Premium on BP-12% 500,000
Bond issue cost on BP-12% 200,000
Bonds Payable-10%, maturing Dec. 31, 2024 P 10,000,000
Bonds Payable-12%, maturing Dec. 31, 2029 8,000,000
Discount on BP-10% 800,000
Premium on BP-12% 500,000
Bond issue cost on BP-12% 200,000
1. No Bonds were retired during 2019. How much interest expense on the bonds payable should OK report in its 2019 income statement? (Use straight-line amortization)
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